Corp000085 Posted June 1, 2005 Share Posted June 1, 2005 I'm quite excited. After 2 and a half months of looking, 1 rejected bid, and one accepted bid, we're closing tomorrow at noon. here's my original thread on the topic http://www.stadiumwall.com/index.php?showt...=22644&hl=house Anyhow, i have our two cars loaded with boxes and loose stuff. We'll close tomorrow, unload, come back and load up here and go back and forth. I've got the help lined up, as well as a uhaul on friday for furniture. I might be absent from the wall for a few days, as my wife would murder me if she saw me on a message board instead of packing. There shouldn't be any hitches with the paperwork or transfer of keys tomorrow. We've got our certified check already from the bank. The only thing that could go wrong would be the current owners not signing tomorrow, which would mean a lawsuit and a lack of place for them to sleep (i drove past today as they were putting their bed on the truck...) After the move, i'll be looking forward to purchasing an HDTV and hd tivo setup as well as some landscaping. I'll be here to post if i see something i like, but wish me luck now! its going to be a long and exciting weekend. Link to comment Share on other sites More sharing options...
TheMadCap Posted June 1, 2005 Share Posted June 1, 2005 Congrats. Welcome to poverty! Link to comment Share on other sites More sharing options...
Corp000085 Posted June 1, 2005 Author Share Posted June 1, 2005 Congrats. Welcome to poverty! 349188[/snapback] its not povery, its "building equity" Link to comment Share on other sites More sharing options...
MadBuffaloDisease Posted June 1, 2005 Share Posted June 1, 2005 its not povery, its "building equity" Until you sell, it's poverty. Congrats. Link to comment Share on other sites More sharing options...
wwovince Posted June 1, 2005 Share Posted June 1, 2005 Congrads man. I cant wait till the day I buy a house. Link to comment Share on other sites More sharing options...
rockpile Posted June 1, 2005 Share Posted June 1, 2005 its not povery, its "building equity" 349189[/snapback] Go to Blockbuster and rent The Money Pit. Good luck! My first house was a shack I bought for $4,000 (yes you are reading that correctly). Two rooms and an out house. I added 4 more rooms (removed the out house) and sold it seven years later for $14,000. I broke even. The next house I bought in the city (Rochacha) and sold four years later for a gain of $16K - not shabby. The third house I stayed in for about 15 years. To honest, I lost money on all that I put into it, but enjoyed living there. My current house I have easily sunk $20K into over the last 5 years, but it was very well spent. When I go to sell it one day, I am sure I will have a small gain over investment, but the quality of life that accompanies the house cannot be priced. Now stop reading and go pack or I am telling your wife! Link to comment Share on other sites More sharing options...
Corp000085 Posted June 1, 2005 Author Share Posted June 1, 2005 Go to Blockbuster and rent The Money Pit. Good luck! My first house was a shack I bought for $4,000 (yes you are reading that correctly). Two rooms and an out house. I added 4 more rooms (removed the out house) and sold it seven years later for $14,000. I broke even. The next house I bought in the city (Rochacha) and sold four years later for a gain of $16K - not shabby. The third house I stayed in for about 15 years. To honest, I lost money on all that I put into it, but enjoyed living there. My current house I have easily sunk $20K into over the last 5 years, but it was very well spent. When I go to sell it one day, I am sure I will have a small gain over investment, but the quality of life that accompanies the house cannot be priced. Now stop reading and go pack or I am telling your wife! 349193[/snapback] yes, and while you're at it, can you explain to her why i have an aquarium canister filter running through the dishwasher?? (i'm retiring my magnum 350 for the time being, but you can go to www.fishforum.net to read about that!) We're set to go though... now just one more sleepless night to go. Link to comment Share on other sites More sharing options...
billsfanone Posted June 2, 2005 Share Posted June 2, 2005 Congrats. I close on mine at the end of July. Link to comment Share on other sites More sharing options...
Buffal0 Bill5 Posted June 2, 2005 Share Posted June 2, 2005 Congratulations. Make one extra mortgage payment a year, specify payment on principle, and you will cut quite a chunk of time off of your repayment, not to mention saving a bundle in interest. Link to comment Share on other sites More sharing options...
Alaska Darin Posted June 2, 2005 Share Posted June 2, 2005 Congratulations. Make one extra mortgage payment a year, specify payment on principle, and you will cut quite a chunk of time off of your repayment, not to mention saving a bundle in interest. 349273[/snapback] WRONG. That wisdom was a good idea when mortgage rates were 8% but it isn't anymore. Make your house payment on time and pay nothing more. Fully fund both your Roth IRA and your spouses. Paying extra on your mortgage when rates are below 6% is not good financial management. Link to comment Share on other sites More sharing options...
erynthered Posted June 2, 2005 Share Posted June 2, 2005 One extra payment per year on an 8% mortgage would move her payoff on a 30-year mortgage up seven years. Not a shabby reduction. Semantics. Its close. Check with your banker. Not a message board. http://www.stretcher.com/stories/02/02may13c.cfm Link to comment Share on other sites More sharing options...
Just Jack Posted June 2, 2005 Share Posted June 2, 2005 I'm closing on mine by the end of this month. We've already got some stuff moved over there, it's a friend of ours that we're buying from. Big stuff will go once the closing is official. Link to comment Share on other sites More sharing options...
Buffal0 Bill5 Posted June 2, 2005 Share Posted June 2, 2005 WRONG. That wisdom was a good idea when mortgage rates were 8% but it isn't anymore. Make your house payment on time and pay nothing more. Fully fund both your Roth IRA and your spouses. Paying extra on your mortgage when rates are below 6% is not good financial management. 349277[/snapback] I'm talking one mortgage payment, not a major investment. Throw your loose change in a bucket several times a week, and you have the money. I'm not advocating using money you would normally invest elsewhere. Depending on you situation, paying your mortgage down to eliminate PMI also can save some money. Link to comment Share on other sites More sharing options...
Alaska Darin Posted June 2, 2005 Share Posted June 2, 2005 I'm talking one mortgage payment, not a major investment. Throw your loose change in a bucket several times a week, and you have the money. I'm not advocating using money you would normally invest elsewhere. Depending on you situation, paying your mortgage down to eliminate PMI also can save some money. 349292[/snapback] Depends on whose house it is. Let's say your P&I is $500 a month ($85000 house, 30 years, 5.75%). You're 25 years old. You put that $500 on your mortgage every year for 10 years. If you make a $500 payment every June it drops your mortgage a grand total of $6500 over that time period. It also costs you money if you amortize your taxes to the tune of whatever rate you're paying. Lose/Lose. Let's say that you take that same $500 and invest it in a Roth IRA and earn 10%. At the end of 10 years you'll have your full mortgage deduction, the ability to take advantage of all the Roth rules, and almost $8K in your pocket. Not to mention simply leaving that money in the Roth and adding nothing to it at that same 10% rate will leave you with close to $140K when you're 65. If you continue adding $500 a year to the Roth for the entire 40 years, you'll have over $220K. It simply doesn't make sense to pay extra on a house at today's interest rates - especially when so few people have adequate emergency cash and there are vehicles available like the Roth. Link to comment Share on other sites More sharing options...
erynthered Posted June 2, 2005 Share Posted June 2, 2005 Depends on whose house it is. Let's say your P&I is $500 a month ($85000 house, 30 years, 5.75%). You're 25 years old. You put that $500 on your mortgage every year for 10 years. If you make a $500 payment every June it drops your mortgage a grand total of $6500 over that time period. It also costs you money if you amortize your taxes to the tune of whatever rate you're paying. Lose/Lose. Let's say that you take that same $500 and invest it in a Roth IRA and earn 10%. At the end of 10 years you'll have your full mortgage deduction, the ability to take advantage of all the Roth rules, and almost $8K in your pocket. Not to mention simply leaving that money in the Roth and adding nothing to it at that same 10% rate will leave you with close to $140K when you're 65. If you continue adding $500 a year to the Roth for the entire 40 years, you'll have over $220K. It simply doesn't make sense to pay extra on a house at today's interest rates - especially when so few people have adequate emergency cash and there are vehicles available like the Roth. 349315[/snapback] To take the time to type that out, is really nice. But remember, most of the American population is stupid. Its nice to have older brothers, or a father that cares. sometimes this board kills me...............really does Link to comment Share on other sites More sharing options...
Alaska Darin Posted June 2, 2005 Share Posted June 2, 2005 To take the time to type that out, is really nice. But remember, most of the American population is stupid. Its nice to have older brothers, or a father that cares. sometimes this board kills me...............really does 349318[/snapback] That's why banks are the tallest buildings in your city. They loan you alot of money at a really high rate of interest and pay you back a pitance for the right to loan your money to someone else at a really high rate. Everyone should cut up their credit cards, fully fund their Roths, have an emergency fund, and save at least 10% of their take home. But all that takes discipline, which is apparently now just a word rather than a trait. Link to comment Share on other sites More sharing options...
Alaska Darin Posted June 2, 2005 Share Posted June 2, 2005 One more thing: Let's say you add an additional mortgage payment once a year. That'll allow you to pay off your mortgage in about 24.5 years. Using the same scenario as earlier ($85K house/30 years/5.75%), that would mean you'd pay about $75K in interest over the term. If you simply paid the house payment for 30 years, you'd pay about $94K. $19K is what you save. Now, you have none of the money in your Roth IRA and only about 15 years to make it up. That means you'll have to invest your ENTIRE house payment (all 13 of them a year) at 10% over that 15 years to have virtually the same amount of money you'd have had if you simply invested the $500 a year instead of tossing it at your mortgage. Plus you lose the tax break. The likelihood of getting screwed in the market increases significantly when you cut off years. Link to comment Share on other sites More sharing options...
rockpile Posted June 3, 2005 Share Posted June 3, 2005 To take the time to type that out, is really nice. But remember, most of the American population is stupid. Its nice to have older brothers, or a father that cares. sometimes this board kills me...............really does 349318[/snapback] Just to put this into perspective, what Darin said closely mirrors what my financial advisor advocates, and he has given me some very sage advice over the years. Just a comment from another stupid contributor to an internet message board.... A lot of interesting thoughts, but definitely see a financial advisor to help plan the path that is best for your specific situation. Link to comment Share on other sites More sharing options...
erynthered Posted June 3, 2005 Share Posted June 3, 2005 Just to put this into perspective, what Darin said closely mirrors what my financial advisor advocates, and he has given me some very sage advice over the years. Just a comment from another stupid contributor to an internet message board.... A lot of interesting thoughts, but definitely see a financial advisor to help plan the path that is best for your specific situation. 350142[/snapback] A word to the wise ain't necessary, it's the stupid ones who need the advice. Thats from Bill Cosby. Your last sentence says it all, that was my point. I did not throw any shots, only advice. Got it? Link to comment Share on other sites More sharing options...
rockpile Posted June 3, 2005 Share Posted June 3, 2005 Your last sentence says it all, that was my point. I did not throw any shots, only advice. Got it? 350158[/snapback] Didn't take it that way. It is not your style. Link to comment Share on other sites More sharing options...
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